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ADB: An abbreviation that stands for either the African Development Bank the Asian Development Bank. The African Development Bank is a regional multilateral development institution engaged in promoting the economic development and social progress of its member countries in Africa. The Bank, established in 1964, started functioning in 1966 with its Headquarters in Abidjan, Cote d' lvoire. The Bank borrows funds from the international money and capital markets. Its shareholders are the 53 countries in Africa as well as 24 countries in the Americas, Europe, and Asia. The Asian Development Bank is a multilateral development finance institution dedicated to reducing poverty in Asia and the Pacific that engages in mostly public sector lending for development purposes in its developing member countries. They pursue this goal by helping to improve the quality of people's lives providing loans and technical assistance for a broad range of development activities. ADB raises fund through bond issues on the world's capital markets but they also rely on members' contributions. The ADB was established in 1966 and has its headquarters in Manila, Philippines. As of September of 2003, the ADB had 58 member countries.
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                           COMPLEMENT GOOD: In general, one of two (or more) goods that are related in a joint manner. In terms of demand, complement goods are those that provide satisfaction of a want or need when consumed together. In terms of supply, complement goods are those that are simultaneously produced using a given resource. A complement good is one of two ways that goods are related. The other is a substitute good. Goods can be complements in terms of consumption or production.- Complements-in-Consumption: Two or more goods that satisfy the wants or needs when consumed jointly. Satisfaction is greater when both goods are consumed together than when they are consumed separately.
- Complements-in-Production: Two or more goods that are jointly produced using a given resource. The production of one good automatically triggers the production of another, often as a bi-product.
On the Consumption SideComplements-in-consumption are goods that provide greater satisfaction when consumed together. Buying and consuming either good by itself is not quite as satisfying as both goods combined. In many cases, if both complement goods cannot be consumed, then neither will be purchased. Buy both, or buy neither.The need for food can be satisfied by consuming a hamburger and french fries. The need for transportation can be satisfied by buying a sport utility vehicle and gasoline. The desire to play golf can be satisfied by purchasing golf clubs and golf balls. Satisfaction is less if only one of each pair is consumed. The price of a complement-in-consumption is part of the other prices demand determinant. A change in the price of a complement-in-consumption causes a change in demand and a shift of the demand curve. An increase in the price of one complement good causes a decrease in demand for the other. A decrease in the price of one complement good causes an increase in demand for the other. To illustrate this process consider two tasty complement food products--Super Deluxe TexMex Gargantuan Tacos and OmniCola soft drink. While each is enjoyable in its own right, when consumed together they create a satisfying meal. Complement-in-Consumption
OmniCola | 
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How is the demand for OmniCola affected if the price of Super Deluxe TexMex Gargantuan Tacos should change?- A Higher Price: Suppose the price of Super Deluxe TexMex Gargantuan Tacos increases. Lunch-seeking consumers making a food selection decision will undoubtedly react according to the law of demand and decrease the quantity demanded of Super Deluxe TexMex Gargantuan Tacos. However, when they purchase fewer Super Deluxe TexMex Gargantuan Tacos, then are also inclined to want or need less OmniCola. The result is a decrease in the demand for OmniCola and a leftward shift of the demand curve. Click the [Price Increase] button to demonstrate.
- A Lower Price: Suppose the price of Super Deluxe TexMex Gargantuan Tacos decreases. Lunch-seeking consumers will also react according to the law of demand, but in this case they increase the quantity demanded of Super Deluxe TexMex Gargantuan Tacos. And as they purchase more Super Deluxe TexMex Gargantuan Tacos, then are also inclined to want or need more OmniCola. The result is an increase in the demand for OmniCola and a rightward shift of the demand curve. Click the [Price Decrease] button to demonstrate.
On the Production SideComplements-in-production result when the production of one good triggers the production of a secondary good, or bi-product. Both goods are simultaneously produced from the same resource. The production of one good does not exclude the production of the other. In fact, it promotes the production of the other. Produce one, produce both.Agricultural producers frequently generate bi-products when they produce a primary good, such as wheat and hay. Cattle ranchers produce both beef and leather from the same cattle resource. Lumber mills use timber resources to the produce two-by-fours and sawdust. The price of a complement-in-production is part of the other prices supply determinant. A change in the price of a complement-in-production causes a change in supply and a shift of the supply curve. An increase in the price of one complement good causes an increase in the supply of the other. A decrease in the price of one complement good causes a decrease in the supply of the other. To illustrate this process consider the simultaneous production of two goods--two-by-fours and sawdust. Each is jointly produced using the same timber resources. When producers produce one, they produce both. Complement-in-Production
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How is the supply of sawdust affected if the price of two-by-fours should change?- A Higher Price: Suppose the price of two-by-fours increases. Profit-minded lumber mills will undoubtedly react according to the law of supply and increase the quantity supplied of two-by-fours. However, in that this generates sawdust as a bi-product, more sawdust is automatically produced. The result is an increase in the supply of sawdust and a rightward shift of the supply curve. Click the [Price Increase] button to demonstrate.
- A Lower Price: Suppose the price of two-by-fours decreases. Profit-minded lumber mills will also likely react according to the law of supply and decrease the quantity supplied of two-by-fours. However, now there is less sawdust generated as a bi-product, with less sawdust automatically produced. The result is a decrease in the supply of sawdust and a leftward shift of the supply curve. Click the [Price Decrease] button to demonstrate.
Recommended Citation:COMPLEMENT GOOD, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2023. [Accessed: December 1, 2023].
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Today, you are likely to spend a great deal of time at an auction trying to buy either a solid oak entertainment center or a remote controlled ceiling fan. Be on the lookout for letters from the Internal Revenue Service.
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In his older years, Andrew Carnegie seldom carried money because he was offended by its sight and touch.
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"Sometimes our light goes out, but is blown into flame by another human being. Each of us owes deepest thanks to those who have rekindled this light. " -- Albert Schweitzer, missionary physician
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